Asked in Bankruptcy and Divorce

Q: What do I file in bankruptcy court or district court to stop a creditor from receiving double payments?

I just received an opinion from the supreme court stating my former spouse can get $120,299.28 from my TSP retirement. Before this I already had a confirmed chapter 13 plan to pay my former spouse. The trustee held off paying any creditors until this ruling from the supreme court came through. Now since the supreme court stated my TSP is not exempt the bankruptcy court is going to start disbursing the money and my former spouse is going to get 83.88% of the monthly payment. So in essence he is getting paid through the district court sending a QDRO to the TSP retirement and bankruptcy court is paying him since he is listed as a creditor. How is this legal for two separate courts to pay the same debt amount to my former spouse? What do I need to file to stop one of these courts from paying him twice?

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3 Lawyer Answers
Justin M. Gillman
Justin M. Gillman
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Edison, NJ

A: The first step is to immediately consult an experienced bankruptcy attorney. You are describing a situation that requires legal action. I would contact the Chapter 13 Trustee to place a hold on distributions and you may need to file a motion or modified plan based on the change in the situation. I can't speak to the specifics of the case without more information or provide an answer as to how it is likely to resolve. It seems it was anticipated that the holding by the supreme court would affect the case so you may need to take action in response to make sure your rights are protected.

Lloyd M. Nolan
Lloyd M. Nolan
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Chesterfield, MO

A: Since you are in a Chapter 13, I will assume that you are represented by an attorney. You should contact your bankruptcy attorney (if you have one) immediately. There are actions that your attorney can take to stop payments to your ex-spouse based upon his payments by QDRO from your Thrift Savings Plan. No creditor is to be paid twice. Your attorney will want to object to your ex-spouse's claim based upon this information and, most likely, you will file an Amended Plan to adjust to the new financial situation. If it appears, considering all factors, that your ex-spouse has been paid in excess of the amounts owed, the Trustee can take action to recover the excess payments.

Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: Motion to examine duplicate payments.

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